Telecoms equipment firm Nortel has signed a $250 million deal with Spain’s Telefonica Moviles to provide infrastructure for Telefonica’s 3G networks in Spain and Germany. As part of the deal, Nortel will lend Telefonica $230 million.
The agreement will involve equipment such as base stations in Spain, combined with a full-service solution including site acquisition and installation in Germany. Nortel will build over 1000 base stations.
This deal reaffirms Telefonica’s commitment to the German market, which had been in doubt. Making money in Germany looks set to be a challenge for mobile operators, who have spent a total of over $44 billion on their 3G licenses.